--- title: "Goertek Q1 Revenue Up 14% Year-Over-Year; Net Profit Grows 7% Amid Exchange Losses | Financial Report Insights" type: "News" locale: "en" url: "https://longbridge.com/en/news/283813917.md" description: "Goertek reported first-quarter revenue of 18.659 billion yuan, a 14.44% year-over-year increase; net profit attributable to parent company shareholders reached 503 million yuan, up 7.28%. Driven by exchange losses, financial expenses surged over 50 times compared to the same period last year, weighing on profit growth. Deducted non-recurring net profit rose 19.57%, indicating improved core business profitability. Net cash flow from operating activities turned negative, while short-term borrowings expanded by nearly 50%. R&D investment continued to increase, and capacity construction progressed steadily" datetime: "2026-04-23T10:46:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283813917.md) - [en](https://longbridge.com/en/news/283813917.md) - [zh-HK](https://longbridge.com/zh-HK/news/283813917.md) --- # Goertek Q1 Revenue Up 14% Year-Over-Year; Net Profit Grows 7% Amid Exchange Losses | Financial Report Insights On April 23, Goertek disclosed its first-quarter report for 2026. During the reporting period, the company achieved operating revenue of 18.659 billion yuan, a 14.44% year-over-year increase; net profit attributable to parent company shareholders was 503 million yuan, up 7.28% year-over-year. Net profit after deducting non-recurring gains and losses amounted to 349 million yuan, a 19.57% year-over-year increase, indicating improved profitability in core businesses. **Profit growth significantly lagged behind revenue growth, primarily dragged down by exchange losses.** Affected by exchange rate fluctuations, financial expenses surged more than 50 times compared to the same period last year, becoming the largest suppressing factor on the profit side. Additionally, net cash flow from operating activities shifted from a net inflow of over 1.5 billion yuan in the same period last year to a net outflow of approximately 585 million yuan, warranting attention to changes in liquidity. Regarding shareholder returns, the company's share repurchase plan ranging from 1 billion to 1.5 billion yuan was completed on April 9, with approximately 44.2 million shares repurchased at a cost of about 1.2 billion yuan. R&D investment continued to increase, with R&D expenses reaching 1.141 billion yuan in the first quarter, a year-over-year increase of approximately 4.2%, while development expenditures rose sharply on a sequential basis. ## Steady Revenue Growth, Exchange Losses Weigh on Profits In the first quarter, Goertek's revenue reached 18.659 billion yuan, a 14.44% year-over-year increase. **Growth drivers came from acoustic precision components, smart hardware contract manufacturing, and core businesses such as VR/AR.** From the profit perspective, net profit attributable to parent company shareholders was 503 million yuan, up 7.28% year-over-year; net profit after deducting non-recurring gains and losses was 349 million yuan, up 19.57% year-over-year, with growth significantly higher than overall net profit. Total non-recurring gains and losses amounted to approximately 154 million yuan, mainly consisting of fair value changes in foreign exchange derivatives and investment income of about 164 million yuan, government subsidies of about 52 million yuan, offset by asset scrapping losses of approximately 37 million yuan. The improvement in core profitability exceeded that of overall net profit, demonstrating continuous optimization of operational quality. Financial expenses showed significant volatility. **First-quarter financial expenses were 344 million yuan, compared to -6.89 million yuan (net income status) in the same period last year, representing a year-over-year change of over 5000%**, primarily driven by increased exchange losses due to exchange rate fluctuations. Investment income during the same period was 322 million yuan, a 123.45% year-over-year increase, mainly stemming from foreign exchange derivative gains. Hedging strategies provided some offset, but **actual exchange losses still exceeded hedging gains**, exerting pressure on consolidated financial statements. For Goertek, whose operations span multiple currency zones, exchange rate fluctuations remain a continuously monitored variable. ## Operating Cash Flow Turns Negative, Short-Term Borrowings Expand Nearly 50% Net cash flow from operating activities in the first quarter was -585 million yuan, compared to a net inflow of 1.536 billion yuan in the same period last year. The company explained this was mainly due to reduced sales collections. Data shows that sales collections in the first quarter were approximately 19.5 billion yuan, a decrease of about 1.5 billion yuan year-over-year, while expenditures for procurement and compensation rose. On the balance sheet side, **short-term borrowings increased from 13.411 billion yuan at the beginning of the year to 20.075 billion yuan, an increase of 49.7%**. The company stated this was due to operational and fund management needs. Monetary funds on the asset side increased from 18.886 billion yuan to 22.404 billion yuan. The expansion of short-term borrowings alongside the simultaneous increase in monetary funds may relate to interest rate arbitrage and liquidity reserves. ## Increased R&D Investment, Capacity Construction Progresses Steadily Net cash outflow from investing activities was 4.408 billion yuan, an expansion of approximately 38% year-over-year. Among these, expenditures for purchasing and constructing fixed assets were approximately 2.3 billion yuan, while expenditures for purchasing time deposits and other financial assets also increased significantly. Total investment expenditures exceeded 16.3 billion yuan, **reflecting the company's dual layout in capacity expansion and financial asset allocation**. Goertek's first-quarter R&D expenses were 1.141 billion yuan, a 4.2% year-over-year increase; the balance of capitalized development expenditures was 356 million yuan, up 58.96% from the beginning of the year, indicating the company is in a concentrated breakthrough phase for multiple key technology projects. On the expense side, management expenses were 566 million yuan, up 10.5% year-over-year; selling expenses were 203 million yuan, up 16.5% year-over-year, basically matching revenue growth and remaining within a reasonable range. On the asset side, construction in progress increased from 2.062 billion yuan at the beginning of the year to 2.572 billion yuan, an increase of 24.7%; fixed assets remained stable at 22.652 billion yuan, with capacity construction progressing in an orderly manner, laying the foundation for subsequently undertaking orders from major clients. ### Related Stocks - [002241.CN](https://longbridge.com/en/quote/002241.CN.md) ## Related News & Research - [China’s Goertek invests $20M more in Vietnam factory for camera production](https://longbridge.com/en/news/283628060.md) - [Tourist arrivals up 10% year on year in April, driven by Hong Kong Sevens](https://longbridge.com/en/news/286512798.md) - [PAULSON: RISKS ARE "SUPER-ELEVATED" RIGHT NOW TO BOTH INFLATION AND THE OUTLOOK](https://longbridge.com/en/news/286977620.md) - [Erdogan: Turkey taking steps to minimize impact of regional tension on people, companies, markets](https://longbridge.com/en/news/286779152.md) - [AI is not replacing workers on a large scale so far, says Bank of Canada](https://longbridge.com/en/news/286540351.md)